Honda Motor's net profit falls over 50% in April-June quarter
Honda released its financial results for the first quarter on Wednesday. It announced that sales fell 1.2 percent from the same period last year to 5.3 trillion yen, or around 36 billion dollars.
The company attributed the decline in part to a drop of over 124 billion yen, or about 845 million dollars, in operating profit due to the impact of US tariffs imposed under President Donald Trump.
At the same time, Honda revised upward its full-year profit forecast from 250 billion yen to 420 billion yen, or roughly 2.8 billion dollars. The automaker says one reason for the revision is its assumption that US tariffs on Japanese auto imports will be lowered to the agreed rate of 15 percent from September.
Honda's chief financial officer and director, Fujimura Eiji, said the lowered rate would have a positive effect and welcomed the clarity it brings.
But he noted that many uncertainties remain, such as when the new rate will actually take effect.
He added that he is calling on the Japanese government to reach an agreement with the US and disclose details as soon as possible.
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